Nissan to build new, $2.0 billion manufacturing complex in Aguascalientes, Mexico, grow capacity in The Americas

Nissan Plant in Aguascalientes, Mexico

• Phase I to enable 175,000 units of small car production capacity in the Americas
• 3,000 direct and up to 9,000 indirect positions will be created in the community

MEXICO CITY : January 25, 2012 - Nissan Motor Co., Ltd. today announced plans to invest up to $2.0 billion USD for an all-new manufacturing complex in Aguascalientes, Mexico, to support the company’s Americas growth strategy. The facility, which will complement Nissan’s two existing Mexican factories, is scheduled to begin operations in late 2013. During the initial phase of its development, the new complex will support production of up to 175,000 units annually of Nissan’s ‘B’ platform products. Further expansion of the site will be considered in phases as product and capacity needs are formalized.

The new complex in Aguascalientes will allow Nissan’s existing and future operations to share critical resources. An all-new supplier park also will be built on the site.

Up to 3,000 direct jobs will be created initially at the new facility, with approximately 9,000 positions to be generated within the supply chain and wider community. With these additional jobs, Nissan’s total headcount in Mexico will expand to nearly 13,500.

"Mexico is a key engine for Nissan’s growth in the Americas," said Carlos Ghosn, chairman and chief executive officer, Nissan Motor Co, Ltd. "Together with our new plant in Brazil, this new manufacturing facility in Aguascalientes is an important pillar in our strategy to ensure that Nissan has the capacity it needs to increase sales volume and market share across the Americas."

Investment in Aguascalientes

Nissan’s $2.0 billion USD investment will support development of the site in Aguascalientes – Nissan’s third in Mexico – and will lay the groundwork for the facility to expand in the future. While other Mexican locations were considered, the State of Aguascalientes was chosen for its proximity to Nissan’s existing manufacturing plant in the same state, which offers direct access to skilled labor and suppliers.

The addition of an incremental production site in Aguascalientes will prepare Nissan to produce more than one million units annually in Mexico in the midterm. Today, Nissan operates two manufacturing facilities in Mexico – one 85 km south of Mexico City in Cuernavaca that produces small cars and light commercial and pickup truck models, and a second in Aguascalientes that produces small cars for the domestic, U.S. and Latin American markets. In 2011, Nissan set a domestic production record with more than 600,000 vehicles manufactured at its Mexican plants.

"In Aguascalientes, we reciprocate the trust that Nissan has deposited in our State for 30 years with work, dedication and effort," said Carlos Lozano de la Torre, Governor of the State of Aguascalientes, Mexico. "During this new stage, we are solidifying our friendship, which will translate into success for this great global company and a more international profile for Mexico and better quality of life for the people of Aguascalientes thanks to new employment and wealth. We would like to extend our gratitude to Carlos Ghosn and the great Nissan family for extending their support, so that Nissan's new manufacturing complex could become a reality here in our home and their home."

The first phase of development for the new Aguascalientes site will include installation of body, trim and chassis and paint manufacturing capability as well as associated parts warehousing and logistics operations. An on-site test track also will be constructed to allow for off-line quality assurance testing of all new-model production.

"No other automaker is investing in Mexico more than Nissan," said Jose Munoz, president and general director, Nissan Mexico. "Nissan’s investment in new manufacturing, engineering and technology resources in Aguascalientes validates what thousands of our employees, suppliers and customers already know. Behind our market leadership is an unparalleled commitment to deliver the best vehicles for Mexico and more than 100 international markets."

Growing capacity to support Americas’ market expansion

Nissan’s expansion in Mexico follows the company’s recent announcement that it will build an all-new manufacturing facility in Resende in the Brazilian state of Rio de Janeiro. That factory will begin production in the first half of 2014 and, together with the newly installed capacity in Mexico, will provide Nissan with the capacity to fuel its growth throughout the Americas region.

In 2011, Nissan’s sales outpaced the Americas automotive industry, rising 17.2 percent to 1,561,230 units. This gain moved Nissan into the No. 2 ranking among Asian brands in the Americas with an overall market share of 7.5 percent, up from 7.0 percent one year earlier and 6.6 percent in 2009.

In the U.S., Nissan has gained market share for six consecutive years, ending 2011 with 8.2 percent of the U.S. market, up from 6 percent just a few years ago. In Mexico, Nissan has been the market leader for three consecutive years and ended 2011 with a record market share of 24.8 percent. In Brazil, Nissan’s business has been rapidly expanding with sales that nearly doubled in 2011. Nissan was Brazil’s fastest-growing automotive brand in 2011 and is now the 7th best-selling car brand in the country. In Latin America, Nissan finished 2011 with 10 percent market share, up 0.4 points from the year prior.

Nissan in Mexico

For more than 50 years Nissan has built an increasing presence in Mexico. Today, six of the ten most popular vehicles sold in Mexico are Nissan models. In 2011, the company sold 224,509 units in Mexico, an increase of 18.5 percent over the previous year, and Nissan Mexicana’s 2011 market share of 24.8 percent has never been surpassed by any automotive brand in more than two decades.

The company, headquartered in Mexico City, operates corporate, marketing, sales, manufacturing, distribution and design facilities throughout the country including in the cities of Aguascalientes, Distrito Federal, Cuernavaca and Toluca.

Nissan’s Mexican production includes the March, Sentra, Versa, Tiida, the historically popular Tsuru, as well as the NP300 light trucks. Seventy percent of production is exported to 100 international markets. Approximately, 80 percent of vehicle content is made in Mexico. The company currently sells 22 vehicle nameplates in Mexico from its global vehicle portfolio.

[Source : NISSAN]